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What Does a New FCC Chairman Mean for California?

Many are wondering if the influence of Ajit Pai, whom President Trump promoted to chairman of the FCC, might substantially change the landscape for telecommunications companies, broadband service providers and emerging technologies. A review of some of Pai's correspondence with state government and his comments in front of the private sector in California do shed a small measure of light on the matter

Many are wondering if the influence of Ajit Pai, whom President Trump promoted to chairman of the FCC, might substantially change the landscape for telecommunications companies, broadband service providers and emerging technologies.

Some critics note that Pai opposes net neutrality rules, and he took heat last week for a decision revoking an order that added nine telecom providers to the Lifeline program, which subsidizes phone and Internet service for low-income citizens. He has been called a "proponent of limited government and a free-market approach to regulations." One observer called him someone who "never met a mega-merger he didn’t like."

Meanwhile, many industry leaders have lauded Trump's elevation of the 44-year-old Pai, a Republican and Kansas-raised lawyer whom President Obama named to the commission in 2012. USTelecom CEO Jonathan Spalter, for example, said "we share Commissioner Pai’s vision for a ‘Broadband First’ future based on a bold but pragmatic strategy to erase the many regulatory barriers impeding the expansion of our nation’s communications infrastructure." Comcast's chief diversity officer said, "This is a terrific appointment for the American consumer and the companies the FCC regulates."

What could Pai's leadership mean for California? It's hard to say for certain, but a quick review of some of Pai's correspondence with California state government and his comments in front of the private sector in California do shed a small measure of light on the matter:

  • In July 2016, Pai sent a letter to the California Public Utilities Commission asking for its help and advice in combating fraud waste and abuse within the Lifeline program. Pai noted that California is one of four states that maintain their own Lifeline accountability databases.
  • In 2012, Pai complimented Gov. Jerry Brown for signing into law the California Internet-Protocol deregulation bill, calling the legislation "bipartisan work at its best" that avoids "intrusive government regulations." Pai said California's bill would "prevent the application of legacy economic regulations to IP services while preserving consumer protections like E911."
  • During a FCC field hearing in 2013 at Moffett Federal Airfield in Santa Clara, Pai said he wanted to learn how California is preparing its communications systems with the knowledge that the next big earthquake will inevitably hit. "So it’s important, as we think about how to keep our communications networks running during emergencies, to consider our country’s complexities before seizing any one-size-fits-all solutions," Pai said in those remarks.
  • At a San Diego Conference of CTIA - The Wireless Association, Pai credited the federal government's "deregulatory approach from the beginning" for the growth of the wireless industry, and he called regulation "pervasive, and it's not pretty." He continued, "In my view, our deregulatory approach to wireless has been a success. The market is highly competitive. Almost all consumers can choose from at least four facilities-based wireless providers. There are also many wireless resellers that cater to consumers who traditionally have been underserved. Prices have consistently fallen."
  • In 2016, Pai proposed a Digital Empowerment Agenda in which he proposed the creation of Gigabit Opportunity Zones, build-out of broadband in rural America, removing regulatory barriers to broadband deployment, and promoting entrepreneurship and innovation.
  • On Tuesday, Pai penned a blog post in which he defended his commitment to closing the digital divide, and he cited a visit to a Los Angeles community as part of his work on the issue. He said the FCC is scheduled later this month to work on proposals to put billions of dollars toward bringing 4G coverage to all parts of the country. Pai said last week's controversial decision about the Lifeline program has been "sensationalized."
Matt Williams was Managing Editor of Techwire from June 2014 through May 2017.